Key Points
A more conservative approach means one can have a product called Balanced Advantage Fund where equity allocations will generally move between 30% to 80% of the portfolio. . Systematic withdrawal plan is a very popular concept, but a lot of people are unaware about the nitty-gritties and when we deep dive into it, there are a lot of technicalities which get lost in the entire concept..
Usually, the use case for this is that if you are retired or financially free and you want money from your portfolio to support you, you can use an SWP plan so that for whichever funds that you have chosen, every month without you having to manually do it, the amount automatically hits your bank account and so that is the broad use case for which SWPs are used..
The way to start off with this rough thumb rule would be that you should at least have 25 times your annual money requirement as your portfolio size to build a good monthly income kind of a solution..
Now, the second part is you obviously want this money to also grow, which means that this year I will take Rs 1 lakh every month, but next year assuming inflation at let us say 5%, you might want to take Rs 1,05,000 next year and post that again you want to increase it by 5%, so this is the second part...
The second part that you will have to do is that if there is a market for say more than 15%, you will have to stop the SWP from this particular Rs 85, which is your core portfolio and then do the SWP for the same amount from your debt portion which is safe..
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